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Borrowings

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Note 12 – Borrowings

Information relating to short-term and long-term borrowings is as follows for the years ended December 31:

		2018								2017								2016
(dollars in thousands)		Amount				Rate				Amount				Rate				Amount				Rate
Short-term:
At Year-End:
Customer repurchase agreements and federal funds purchased		$	30,413				0.86	%		$	76,561				0.33	%		$	76,561				0.33	%
Federal Home Loan Bank – current portion			—				—				325,000				1.48	%			325,000				1.48	%
Total		$	30,413							$	401,561							$	401,561

Average Daily Balance:
Customer repurchase agreements and federal funds purchased		$	44,333				0.51	%		$	73,237				0.27	%		$	73,237				0.27	%
Federal Home Loan Bank – current portion			192,131				2.02	%			65,416				1.13	%			65,416				1.13	%
Total		$	236,464							$	138,653							$	138,653

Maximum Month-end Balance:
Customer repurchase agreements and federal funds purchased		$	72,141				0.32	%		$	85,614				0.29	%		$	85,614				0.29	%
Federal Home Loan Bank – current portion			325,000				1.62	%			325,000				1.48	%			325,000				1.48	%
Total		$	397,141							$	410,614							$	410,614

Long-term:
At Year-End:
Subordinated Notes			220,000				5.42	%			220,000				5.42	%			220,000				5.42	%

Average Daily Balance:
Subordinated Notes			220,000				5.42	%			220,000				5.42	%			220,000				5.42	%
Total		$	220,000							$	220,000							$	220,000
Maximum Month-end Balance:
Subordinated Notes			220,000				5.42	%			220,000				5.42	%			220,000				5.42	%
Total		$	220,000							$	220,000							$	220,000

The Company offers its business customers a repurchase agreement sweep account in which it collateralizes these funds with U.S. agency and mortgage backed securities segregated in its investment portfolio for this purpose. By entering into the agreement, the customer agrees to have the Bank repurchase the designated securities on the business day following the initial transaction in consideration of the payment of interest at the rate prevailing on the day of the transaction.

The Bank can purchase up to $147.5 million in federal funds on an unsecured basis from its correspondents, against which there were no amounts outstanding at December 31, 2018 and can borrow unsecured funds under one-way CDARS and ICS brokered deposits in the amount of $1.26 billion, against which there was $62.3 million outstanding at December 31, 2018. The Bank also has a commitment at December 31, 2018 from Promontory to place up to $700.0 million of brokered deposits from its IND program in amounts requested by the Bank, as compared to an actual balance of $544.5 million at December 31, 2018. At December 31, 2018, the Bank was also eligible to make advances from the FHLB up to $1.51 billion based on collateral at the FHLB, of which there was $55.0 million outstanding at December 31, 2018. The Bank may enter into repurchase agreements as well as obtain additional borrowing capabilities from the FHLB provided adequate collateral exists to secure these lending relationships. The Bank also has a back-up borrowing facility through the Discount Window at the Federal Reserve Bank of Richmond (“Federal Reserve Bank”). This facility, which amounts to approximately $662.0 million, is collateralized with specific loan assets identified to the Federal Reserve Bank. It is anticipated that, except for periodic testing, this facility would be utilized for contingency funding only.

On August 5, 2014, the Company completed the sale of $70.0 million of its 5.75% subordinated notes, due September 1, 2024 (the “2024 Notes”). The Notes were offered to the public at par. The 2024 Notes qualify as Tier 2 capital for regulatory purposes to the fullest extent permitted under the Basel III Rule capital requirements. The net proceeds were approximately $68.8 million, which includes $1.2 million in deferred financing costs which is being amortized over the life of the 2024 Notes.

On July 26, 2016, the Company completed the sale of $150.0 million of its 5.00% Fixed-to-Floating Rate Subordinated Notes, due August 1, 2026 (the “2026 Notes”). The 2026 Notes were offered to the public at par and qualify as Tier 2 capital for regulatory purposes to the fullest extent permitted under the Basel III Rule capital requirements. The net proceeds were approximately $147.35 million, which includes $2.6 million in deferred financing costs which is being amortized over the life of the 2026 Notes.